September 1, 2020, Taiwan Co. issued a note payable to BDO in the amount of P1,200,000, with the stated rate of 12% and payable in three equal annual installments. On this date, the bank’s prime rate is 11%. The first interest and principal payment was made on September 1, 2021. How much should Taiwan record as interest payable on December 31, 2021
September 1, 2020, Taiwan Co. issued a note payable to BDO in the amount of P1,200,000, with the stated rate of 12% and payable in three equal annual installments. On this date, the bank’s prime rate is 11%. The first interest and principal payment was made on September 1, 2021. How much should Taiwan record as interest payable on December 31, 2021
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 30E
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On September 1, 2020, Taiwan Co. issued a note payable to BDO in the amount of P1,200,000, with the stated rate of 12% and payable in three equal annual installments. On this date, the bank’s prime rate is 11%. The first interest and principal payment was made on September 1, 2021. How much should Taiwan record as interest payable on December 31, 2021
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